Hey Looks,
Glad to hear you did a little research and have an idea of what you are looking at. They are both OK cards, main issue with DC is that it just lost a lot of it's benefits and has a FTF. Issue with Paypal MC is that it is backed by Synchrony and fraud/dispute/customer service with them can be spotty.
Other 2% cards of notable interest:
Fidelity Visa - straight 2%, backed by Elan, cashback only deposited into a Fideltiy account
Amex Blue Business Plus - x2 MR on anything up to $50k per year, business card so not on personal report, Amex not accepted everywhere
Alliant Platinum Rewards Visa - x2 points that are worth one cent each, CU is pretty conservative
Penfed PowerCash Rewards Visa - 2% if you keep some money in their checking account
SDFCU Premium Cashback+ - 2% Visa, CU is really conservative and customer service is slow, but good
Goodluck with whatever you go with. While not that big of a deal, the SUB can make a bit of a difference. For example the Amex BBP has no SUB at all while the SDFCU card has a $200 SUB. Don't let it make your decision for you, think about long term viability of the card, but if you are on the fence, it can help sway one way or the other.
With Amex BBP you get MR which can be worth more or less depending on how you redeem. If you can get 1.2 cent per MR with a decent redemption (those are easy and don't require business/first class seats) then the BBP was earning you a cashback rate roughly equal to 2.4%.
I am interested in this same choice between Citi DC and Paypal MC, though I'm not in position to be approved for either yet. By the time I am, I expect my secured Citi Diamond to be PCable to a DC, so that will probably make my decision for me.
I'm not concerned about losing 1% of 1%, so the flat 2% thing doesn't seem important to me ... may change my mind at some point. I would rather deal with Citi than with Sync. Otherwise, seems like the same thing with minor pros and cons either direction.
The way Paypal promotes their card bothers me. They email everyone with a Paypal account with text that makes a lot of people think they are pretty certain to get the card if they apply, leading to a lot of wasted hard pulls and rejections. They aren't lying but IMO if they want to maintain goodwill with their existing customers, they should be more selective sending that type of email.
@kdm31091 wrote: " .... All of the 2 percent cards have catches and quirks."
+++1 ... Bravo!! One of the only times I've seen criticism of the available 2% options. I don't have a 2%-on-everything pure cash back card. I've been evaluating the 2% options and frustrated with the lack of a clear winner. If you study the fine print and read the user reviews, all of them have limitations and quirks.
Give me an account that has ALL of these features. There are none that I have found.
- NO minimum redemptions (which sets you up to lose a % of your savings).
*$50 (5000 pts) Fidelity; $25 DC; Alliant $20; SDFCU+PenFed are lowest at $5 minimum IIRC
*Nobody redeems starting at a penny (Like cards from Capital One, Bank of America, Discover, etc.)
- NO requirement to maintain a separate bank, investment (Fidelity or Bank of America), or PayPal account.
- NO loss of 2% value when redeemed for CASH (Fidelity = only 1% if cashed out.)
- NO loss of 1% when you pay with your points instead of cash-out (DC)
- NO loss of points as long as account is open and in good standing.
*DC = 12 months activity limit; some others have longer limits.
- NO Foreign Transaction Fees
- NO charge for paper statements (PenFed = $1 a month)
- Easy access to account info; charges; notifications via website or app
*PPMC has cumbersome interface reviews
- Good to Excellent Customer service and fraud prevention reviews
(*I've seen sketchy ones from several of the 2% lenders.)
I am still considering them but wish there was a clear winner.
*This list does not consider any cards that give Points (MR,UR, etc) or Miles since they are not CASH into my account or statement credit and if they even have a cash-out option do not pay at a 2% cash rate.
@digitek wrote:
Amex Blue Business Plus - x2 MR on anything up to $50k per year ... With Amex BBP you get MR which can be worth more or less depending on how you redeem.
@digitek- good overall summary and review of some of the available cash-back options.
However, I believe that points and miles cards are best left out of the discussion when cash-back cards are considered. As you pointed out, they may pay out much better (or much less) in "value" for a given cardholder. Many people who ask about 'cash-back' cards are only looking for either cold, hard cash refunded to an account or credited to a statement at a no-nonsense penny-a-point.
When MR and UR points or Bank of America Premium Rewards or Venture Miles or whatever is brought into the discussion, that just unnecessarily complicates the issue for those who are looking for CASH back options. While MR points can be valuable, when redeemed for cash credit, they are only worth .006 per point which is a pitiful 1.2% when redeemed for cash-out. While I may be able to redeem for 2.25% in travel with my CFU and CSR on the UR portal, I can't redeem for 2.25% cash money there, so I don't bring that up. Limiting the discussion to the cards that pay at least 2% cash (of which there are several options already) focuses the on that category alone.